Introductory Business Law CLEP Prep Practice Exam

Consideration is required to make a contract legally binding. Which of the following is not required to be considered consideration?

1. Release from a legal obligation

2. Performance of an existing contractual duty

3. Reduction of the purchase price

4. A promise to enter into a contract

The correct answer is: A promise to enter into a contract

Consideration is an essential element of a legally binding contract, meaning that both parties must receive something of value in exchange for their agreement. In this case, all options except for D involve providing something of monetary or legal value and are therefore considered consideration. However, a mere promise to enter into a contract without any exchange or consideration does not make a contract legally binding. Therefore, the correct answer is D.